Canadian Javelin Limited Stock Certificate - FRAUD

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Beautifully engraved Stock Certificate from
Canadian Javelin Limited issued in the early 1970s for shares of Common Stock. The certificate has a green block ornate border with a vignette of an allegorical woman holding a Javelin and shield in front of a world globe. This certificate is over 28 years old. This company was involved with distributing misleading information, which ultimately led to a stock trading suspension. This case was taken to the U.S. Supreme Court to decide on the SECs authority in halting trading. This was a landmark securities case, which has been continually referenced in subsequent security cases. On November 29, 1973, apparently because Canadian Javelin Limited had disseminated allegedly false and misleading press releases concerning certain of its business activities, the Commission issued the first of what was to become a series of summary 10-day suspension orders continuously suspending trading in CJL common stock from that date until January 26, 1975. App. 109. During this series of suspensions respondent Sloan, who owned 13 shares of CJL stock and had engaged in substantial purchases and short sales of shares of that stock, filed a petition in the United States Court of Appeals for the Second Circuit challenging the orders on a variety of grounds. John Doyle who owned the Quebec-based mining company Canadian Javelin, had wanted to join in a partnership with the Newfoundland and Labrador Corporation (NALCO), a provincial Crown corporation that Smallwood and Valdmanis had created to avoid paying federal tax. NALCO controlled all of the province's natural resources and industrial development, and when shares went on sale in 1953, Canadian Javelin began buying, eventually acquiring 67,672 of NALCO's 80,172 total. But the deal fizzled when the Toronto and Montreal stock exchanges expelled Canadian Javelin, following a hectic trading period in which its shares moved from a low of $2.25 to $10.75 and then to $5.75. Not only were the exchanges suspicious, but also members of Javelin later sued Doyle for stock manipulation.